New effective lives of depreciable assets
Taxation Ruling 2013/4
The Australian Taxation Office (ATO) has released a new tax ruling effective from the 1st of July 2013.
Replacing Tax Ruling 2012/2, Tax Ruling 2013/4 explains the methods to be used when determining the effective lives of depreciating assets. Table B of Tax Ruling 2013/4 also lists the effective lives of depreciable assets currently recognised by the ATO.
The tax ruling in effect at the time an asset is acquired determines the effective life of that asset. For this reason, any changes the ATO have made to effective lives of assets in Tax Ruling 2013/4 will only affect assets purchased and installed for use after the 1st of July 2013.
If a depreciating asset has been purchased for use within a five year period, the effective life that will apply is the one in force from the date the depreciating asset is first used or installed ready to use.
While many assets have not been affected, the following table outlines the industries which have assets with new effective lives determined in the new ATO ruling.
BMT Tax Depreciation prepares depreciation schedules for a vast range of commercial sectors. For any queries regarding claiming depreciation in your industry, contact BMT Tax Depreciation.
If you would like a full copy of the new ruling and the assets with new effective lives for any of the above mentioned industries, please email email@example.com.